Bank 1Q 2010 results under the Russian accounting standards (RAS)

“In 1Q 2010, we continued to develop our business: net profit for 1Q 2010 exceeded the result for 1Q 2009, the tempo of the overdue loans growth slowed down, our loan portfolio grew. In April, the RUB 5 billion bond issue has successfully been completed. The deal was met with strong investor demand and the book was more than three-times oversubscribed”.

Financial highlights for 1Q 2010 under RAS*

- Net income amounted to RUB 322.5 million (+10.9% compared with 1Q 2009);

As at January 1, 2010, Bank Saint Petersburg was ranked 13th in terms of retail deposits and 17th in terms of assets among the Russian banks (Interfax ranking). As at April 1, 2010, the number of cards issued by the Bank exceeded 676,500; the Bank’s card network comprised of 441 ATMs. Today, the Bank provides services for over 952,600 individuals and 34,600 corporates. As at April 1, 2010, Internet-Bank was actively used by 57,500 clients.

Among the most significant events of the beginning of the year was a RUB 5 billion bond issue with the coupon rate of 8.1%. Over the course of book building overall demand amounted to RUB 18 598 million. Proceeds from the issuance will be used to finance lending to real-sector businesses, as well as to bolster the Bank’s retail lending and ongoing operations.

Bank’s assets decreased by 0.7% to RUB 237.6 billion compared with RUB 239.3 billion as at January 1, 2010.

Bank’s total capital calculated under the Bank of Russia methodology amounted to RUB 33.5 billion (-1.3 % compared with January 1, 2010). As a result the capital adequacy as at April 1, 2010 amounted to 15.1%.

Net income increased by 10.9% compared with 1Q 2009 amounting to RUB 322.5 billion. Profit before tax for 1Q 2010 amounted to RUB 596.7 million (-17.3% compared to the previous year result).

Liabilities. Customer accounts amounted to RUB 175.7 billion (-5.3% compared to January 1, 2010). As at April 1, 2010, the corporate customer accounts amounted to RUB 114.3 billion (-9.6% compared to January 1, 2010). Retail customer accounts amounted to RUB 61.4 billion (+3.8% compared to January 1, 2010). As at April 1, 2010, the Central Bank of Russia funding was fully repaid (RUB 8.6 billion for January 1, 2010).

Loan portfolio. As at April 1, 2010, the loan portfolio amounted to RUB 169.5 billion (+2.1% compared to January 1, 2010). As at April 1, 2010, the share of the overdue loans amounted to 5.64% (4.61% as at January 1, 2010); the level of coverage of the overdue loans by provisions made up 166%.